Therefore, for a sustainable business model, OEMs are turning to connected products and services. As a result, IoT services enablement is experiencing rapid growth which OEMs can tap into.
According to Statista research, over 700 billion devices will have connectivity by 2025. The Internet of Things market is worth around 0.7 billion pounds each year from 2018 onwards.
Why IoT Services is transforming the OEM Industry
Today, in many industries IoT is transforming goods being manufactured. Hence, we are seeing more OEMs are adding connectivity to their goods and putting sensors in all sorts of things. As a result, these are generating data that can create a new revenue stream and new business models.
More connectivity, more data
OEMs are adding IoT connectivity to existing products and launching new IoT lines. As a result, this helps reduce the risk of new product failures, as IoT based products enable them to check actual use.
In addition to the performance of their products, they get live feedback from customers. As a result, this helps improve profitability and performance of warranty service contracts.
The big data collected is being analysed by OEMs to optimize their products. Helping to improve performance and manufacturing processes.
They are learning how customers use their products, which then helps with development.
Adding IoT connectivity to their products helps OEMs to stand out from competitors. It creates revenue streams, such as value-added services, subscriptions and apps. These new revenue streams continue long after their initial sale of the product.
Why partner with enablement IoT service providers?
Offering connected products and services open new revenue streams. But offering and supporting these value-added services is very complex.
It needs supporting capabilities and experience, along with service and device registration. Devices need network activation, payment processing, care and support.
OEMs are good at manufacturing product but are not experts in enablement of IoT services.
In contrast service providers have been offering IoT enablement to customers for many years. This is the perfect opportunity for OEMs and service providers to partner together.
Partnering with IoT service providers to produce devices with out-of-box connectivity extends offerings. Furthermore, combined with device management platform, OEMs offering increases into the IoT value chain.
The OEMs ideal partner is a IoT service provider that can offer a whole enablement package. This includes the following features;
• eSIM orchestration
• Rich connectivity and device analytics
• API integration
• Device management
• Billing and rating reconciliations
The IoT offering need to be scalable and flexible with a low cost of enablement for all devices.
IoT enablement is changing the traditional OEM business model, creating new revenue streams. As a result, supporting the move sustainable service consumption model.